This idea stems from lack of familiarity with Israeli society.

Israel is a small country with very few degrees of separation between people.

The communities attacked are highly organized, hate the current government,somewhat critical of the establishment, and closely connected to the highest ranks in the IDF. Including some generals. And also connected to many of the fighters who were there on the ground.

There is absolutely zero chance that the army would kill many people and that it would be kept hidden from the families and the public in large.

Also, Hamas was not merely taking hostages, but spraying people with bullets and setting houses on fire with families in them. So your SWAT team dillema means nothing, as the army had no other option other then engaging with the enemy as fast as possible. The fact that in many places special forces were indeed sent to carefuly deal with hostage situations is being criticised as it may have wasted time in which the Hamas was killing more people, and people who were trapped in their homes got choked or burned.

The better strategy may have been to charge at the terrorists, as their numbers and whereabouts were unknown and while some were holding hostages others were still moving around in cars or by foot looking for hostages to take or victims to kill.

The only confirmed friendly fire case during October 7 that I personally read about was a tank that entered into a fire exchange with Hamas hostage takers.

40 terrorists and 15 hostages were surrounded in a house at Be'eri, Firing at IDF and police forces that surrounded the house.

After a failed negotiation in which the Hamas commander alone surrenderd with one hostage, fighting resumed.

The Hamas members were firing with guns and RPGs at the tank and nearby forces.

The Tank fired two shells at the house killing the terrorists and all but 1 of the remaining hostages.

This is the Hebrew wikipedia page about the battle. https://he.wikipedia.org/wiki/%D7%A4%D7%A8%D7%A9%D7%AA_%D7%9...